Qatar warns Middle East war could trigger global crisis
Photo: Oil prices will rise sharply in a few weeks (Getty Images)
Qatar warned that war in the Middle East could "bring down the economies of the world" if energy exports are halted. In just a few weeks, oil prices could reach $150 per barrel, stated Qatar’s energy minister, Saad al-Kaabi, the Financial Times reports.
He said that all energy producers in the Persian Gulf could stop exports soon if the US and Israel do not stop the war against Iran.
"Everybody that has not called for force majeure we expect will do so in the next few days that this continues. All exporters in the Gulf region will have to call force majeure. If this war continues for a few weeks, GDP growth around the world will be impacted," Kaabi said.
According to Saad al-Kaabi, global oil prices could surge to $150 per barrel within two to three weeks if tankers are unable to pass through the Strait of Hormuz.
"Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply," the minister explained.
Moreover, according to him, even if the war ended immediately, it would take Qatar several weeks to a few months to return to a normal supply cycle.
Blocking of the Strait of Hormuz
Previously, Iran has effectively blocked vessel traffic through the Strait of Hormuz, which carries about 20% of global oil shipments. Tehran stated that transit will not resume until further notice.
Western media, citing sources, reported that the administration of US President Donald Trump is considering providing military protection for oil and gas tankers passing through the Strait of Hormuz.
Economic consequences of the war
Due to the war in the Middle East, shipping in the region has almost stopped, with volumes falling by 75%. Oil tanker owners are unwilling to risk going to sea.
As a result, fuel prices have surged sharply. India and Iran have already raised prices on their oil.
According to earlier forecasts, with the blockade of oil transport through the Strait of Hormuz, oil prices could reach $100 per barrel, and that may not be the limit.
